Deck 15: Extension: A: Market Demand

Question 1

the demand function for drangles is given by D(p)= (p + 1)^-2.If the price of drangles is $11, then the price elasticity of demand is

A)-7.33.
B)-3.67.
C)-5.50.
D)-0.92.
E)-1.83.

Answer 1

-1.83.

Question 2

suppose every Buick owner's demand for gasoline is 20 - 5p for p less than or equal to 4 and 0 for p > 4.Every Dodge owner's demand is 15 - 3p for p less than or equal to 5 and 0 for p > 5.Suppose that Gas Pump, South Dakota, has 100 Buick owners and 100 Dodge owners.If the price of gasoline is $3, what is the total amount of gasoline demanded in Gas Pump?

A)550 gallons
B)1,100 gallons
C)2,200 gallons
D)1,650 gallons
E)None of the above.

Answer 2

1,100 gallons

Question 3

the only quantities of good 1 that Barbie can buy are 1 unit or zero units.For x₁ equal to zero or 1 and for all positive values of x₂, suppose that Barbie's preferences were represented by the utility function (x₁ + 12)(x₂ + 8).Then if her income were $36, her reservation price for good 1 would be

A)$3.38.
B)$6.77.
C)$1.50.
D)$4.50.
E)$.57.

Answer 3

$3.38.

Question 4

In the same football conference there is another university where the demand for football tickets at each game is 100,000 - 8,000p.If the capacity of the stadium at that university is 60,000 seats, what is the revenue-maximizing price for this university to charge per ticket?

A)$6.25
B)$5
C)$12.50
D)$3.13
E)$18.75

Question 5

the only quantities of good 1 that Barbie can buy are 1 unit or zero units.For x₁ equal to zero or 1 and for all positive values of x₂, suppose that Barbie's preferences were represented by the utility function (x₁ + 10)(x₂ + 12).Then if her income were $4, her reservation price for good 1 would be

A)$2.91.
B)$6.50.
C)$1.45.
D)$.83.
E)$1.10.

Question 6

suppose every Buick owner's demand for gasoline is 20 - 5p for p less than or equal to 4 and 0 for p > 4.Every Dodge owner's demand is 15 - 3p for p less than or equal to 5 and 0 for p > 5.Suppose that Gas Pump, South Dakota, has 100 Buick owners and 200 Dodge owners.If the price of gasoline is $3.50, what is the total amount of gasoline demanded in Gas Pump?

A)2,300 gallons
B)575 gallons
C)1,725 gallons
D)1,150 gallons
E)None of the above.

Question 7

suppose every Buick owner's demand for gasoline is 20 - 5p for p less than or equal to 4 and 0 for p > 4.Every Dodge owner's demand is 15 - 3p for p less than or equal to 5 and 0 for p > 5.Suppose that Gas Pump, South Dakota, has 100 Buick owners and 200 Dodge owners.If the price of gasoline is $4.25, what is the total amount of gasoline demanded in Gas Pump?

A)225 gallons
B)675 gallons
C)450 gallons
D)900 gallons
E)None of the above.

Question 8

the demand function for drangles is given by D(p)= (p + 1)^-2.If the price of drangles is $20, then the price elasticity of demand is

A)-0.95.
B)-7.62.
C)-5.71.
D)-3.81.
E)-1.90.

Question 9

In the same football conference there is another university where the demand for football tickets at each game is 180,000 - 10,000p.If the capacity of the stadium at that university is 100,000 seats, what is the revenue-maximizing price for this university to charge per ticket?

A)$4.50
B)$9
C)$8
D)$18
E)$27

Question 10

suppose every Buick owner's demand for gasoline is 20 - 5p for p less than or equal to 4 and 0 for p > 4.Every Dodge owner's demand is 15 - 3p for p less than or equal to 5 and 0 for p > 5.Suppose that Gas Pump, South Dakota, has 100 Buick owners and 250 Dodge owners.If the price of gasoline is $4, what is the total amount of gasoline demanded in Gas Pump?

A)1,500 gallons
B)375 gallons
C)1,125 gallons
D)750 gallons
E)None of the above.

Question 11

suppose every Buick owner's demand for gasoline is 20 - 5p for p less than or equal to 4 and 0 for p > 4.Every Dodge owner's demand is 15 - 3p for p less than or equal to 5 and 0 for p > 5.Suppose that Gas Pump, South Dakota, has 100 Buick owners and 150 Dodge owners.If the price of gasoline is $3.50, what is the total amount of gasoline demanded in Gas Pump?

A)1,850 gallons
B)1,387.50 gallons
C)462.50 gallons
D)925 gallons
E)None of the above.

Question 12

In the same football conference there is another university where the demand for football tickets at each game is 60,000 - 8,000p.If the capacity of the stadium at that university is 40,000 seats, what is the revenue-maximizing price for this university to charge per ticket?

A)$3.75
B)$1.88
C)$7.50
D)$2.50
E)$11.25

Question 13

the only quantities of good 1 that Barbie can buy are 1 unit or zero units.For x₁ equal to zero or 1 and for all positive values of x₂, suppose that Barbie's preferences were represented by the utility function (x₁ + 6)(x₂ + 8).Then if her income were $20, her reservation price for good 1 would be

A)$4.50.
B)$.75.
C)$8.
D)$4.
E)$1.23.

Question 14

the demand function for drangles is given by D(p)= (p + 1)^-2.If the price of drangles is $8, then the price elasticity of demand is

A)-3.56.
B)-5.33.
C)-0.89.
D)-7.11.
E)-1.78.

Question 15

In the same football conference there is another university where the demand for football tickets at each game is 160,000 - 12,000p.If the capacity of the stadium at that university is 90,000 seats, what is the revenue-maximizing price for this university to charge per ticket?

A)$6.67
B)$13.33
C)$5.83
D)$3.33
E)$20

Question 16

In the same football conference there is another university where the demand for football tickets at each game is 80,000 - 4,000p.If the capacity of the stadium at that university is 50,000 seats, what is the revenue-maximizing price for this university to charge per ticket?

A)$10
B)$5
C)$7.50
D)$20
E)$30

Question 17

the only quantities of good 1 that Barbie can buy are 1 unit or zero units.For x₁ equal to zero or 1 and for all positive values of x₂, suppose that Barbie's preferences were represented by the utility function (x₁ + 10)(x₂ + 4).Then if her income were $12, her reservation price for good 1 would be

A)$2.50.
B)$1.45.
C)$2.91.
D)$2.50
E)$.30.

Question 18

the only quantities of good 1 that Barbie can buy are 1 unit or zero units.For x₁ equal to zero or 1 and for all positive values of x₂, suppose that Barbie's preferences were represented by the utility function (x₁ + 6)(x₂ + 4).Then if her income were $16, her reservation price for good 1 would be

A)$2.86.
B)$2.50.
C)$5.71.
D)$1.50.
E)$.57.

Question 19

the demand function for drangles is given by D(p)= (p +1)^-2.If the price of drangles is $4, then the price elasticity of demand is

A)-0.80.
B)-6.40.
C)-3.20.
D)-4.80.
E)-1.60.

Question 20

the demand function for drangles is given by D(p)= (p + 1)^-2.If the price of drangles is $3, then the price elasticity of demand is

A)-0.75.
B)-3.
C)-4.50.
D)-6.
E)-1.50.

Question 21

the demand for tickets is given by D(p)= 200,000 - 10,000p, where p is the price of tickets.If the price of tickets is $15, then the price elasticity of demand for tickets is

A)-6.
B)-9.
C)-4.50.
D)-1.50.
E)-3.

Question 22

the demand for tickets is given by D(p)= 200,000 - 10,000p, where p is the price of tickets.If the price of tickets is $8, then the price elasticity of demand for tickets is

A)-1.33.
B)-2.
C)-0.33.
D)-1.
E)-0.67.

Question 23

the demand for tickets is given by D(p)= 200,000 - 10,000p, where p is the price of tickets.If the price of tickets is $8, then the price elasticity of demand for tickets is

A)-0.33.
B)-1.33.
C)-1.
D)-2.
E)-0.67.

Question 24

the demand for tickets is given by D(p)= 200,000 - 10,000p, where p is the price of tickets.If the price of tickets is $18, then the price elasticity of demand for tickets is

A)-27.
B)-18.
C)-13.50.
D)-4.50.
E)-9.

Question 25

the demand for tickets is given by D(p)= 200,000 - 10,000p, where p is the price of tickets.If the price of tickets is $10, then the price elasticity of demand for tickets is

A)-2.
B)-1.50.
C)-3.
D)-0.50.
E)-1.